What is the deductible for Original Medicare?
In 2023, the Medicare Part A deductible is $1,600 per benefit period (an increase of $44 from $1,556 in 2022) and the Part B annual deductible is $226
(a decrease of $7 from the annual deductible of $233 in 2022). The Centers for Medicare & Medicaid Services (CMS) releases new premiums, deductibles and coinsurance amounts for Part A, Part B and the Medicare Part D income-related monthly adjustment amounts every fall.
Understanding out-of-pocket Medicare costs
There are 3 primary out-of-pocket costs you’ll want to consider as you begin comparing Medicare plans:
- Copays—A fixed amount ($20, for example) you pay for a covered healthcare service after you've paid your deductible
- Coinsurance—The percentage of costs of a covered healthcare service you pay (20%, for example) after you've paid your deductible
- Deductibles—The amount you pay for covered healthcare services before your insurance plan starts to pay.
Let’s take a look at deductibles. Medicare plans have deductibles just like individual or employer health insurance plans do. Both Original Medicare and, typically, Medicare Advantage Plans, require you to meet a deductible—an amount you pay for healthcare or for prescriptions—before your healthcare plan begins to pay.
Medicare Part A, the hospital insurance program, and Medicare Part B, which covers doctor services, among other things, both have a deductible, which is 1 type of out-of-pocket cost members may have to pay.
Medicare Advantage plans, which may offer additional benefits, have different costs depending on the plan.
The deductibles listed below are for 2023 Original Medicare Part A and Part B.
2022 and 2023 Medicare Part A deductible
Original Medicare requires that you pay a deductible for each inpatient hospital “benefit period,” which means you may have to pay a deductible more than once in a single year.
A benefit period begins the day you're admitted to a hospital or skilled nursing facility and ends when you haven't spent the night in one of them for 60 consecutive days. If you're admitted to a hospital or skilled nursing facility after one benefit period has ended, then a new one begins, and you’ll have to pay another deductible.
The 2023 Medicare Part A deductible for each benefit period is $1,600 (an increase of $44 from $1,556 in 2022).
2022 and 2023 Medicare Part B deductible
Medicare Part B covers most doctor services, including those you receive while hospitalized, as well as outpatient therapy and the rental or purchase of durable medical equipment, which is equipment your doctor prescribes because it is medically necessary, like blood sugar monitor test strips, walkers or wheelchairs. After your deductible is met, it’s typical to pay 20% of the Medicare-approved amount for these services.
The total 2023 Part B deductible is $226 for the year (a decrease of $7 from the annual deductible of $233 in 2022). No benefit periods apply to Part B coverage.
How to potentially reduce your deductibles with Medicare Supplement (Medigap) plans
You can buy private Medicare Supplement insurance to cover Medicare’s out-of-pocket expenses, including the hospital deductible.
However, if you’re enrolled in a Medicare Advantage Plan, you can only purchase a Medicare Supplement plan if your Medicare Advantage plan coverage is ending. Medicare Supplement plans cannot be purchased while you are currently enrolled and planning to remain on a Medicare Advantage plan.
Is there a deductible for a Medicare Part C (Medicare Advantage) plan?
Medicare Advantage plans may have their own deductible, while others may have $0 deductible. If you’re enrolled in a Medicare Advantage plan, you will only be responsible for paying your Medicare Advantage plan deductible.
Is there a deductible for Medicare Part D prescription drug plans?
Deductibles can vary between Medicare Part D prescription drug plans. The Part D deductible is the amount you pay before your plan helps cover the cost for your prescription drugs. In 2023, no Medicare prescription drug plan can have a deductible more than $505 (an increase of $25 from $480 in 2022).